On average, half of all self-pay medical expenses goes uncollected, and the likelihood of collecting unpaid balances decreases rapidly as accounts age.
Assigning management of late-stage account receivables to a trusted third party such as Capio Partners frees up internal human resources while improving cash flow.
The Centers for Medicaid and Medicare Services (CMS) gives healthcare providers options for handling account receivables. Using a $100 million portfolio as an illustration, two approaches comply with CMS rules but yield vastly different outcomes.
OPTION 1: Do nothing. Some patients with outstanding healthcare accounts will pay a bit over time for a yield of 7 to 14 net basis points and $70,000 to $100,000 over a 7-year period.
OPTION 2: Convert healthcare accounts to cash. This strategy yields 50 to 75 net basis points for an immediate return of up to $1.75 million.
Converting healthcare accounts to cash can cut expenses by millions of dollars, bring a one-time cash boost and, when late-stage accounts are sold monthly or quarterly going forward, create an ongoing revenue stream.
“For more than two years we have been working together, and Capio Partners has added millions of dollars to our bottom line. More importantly, they have proven themselves as true partners.” “By adding Capio Partners as the final step in our revenue cycle, it has helped educate and train our patients to pay, decreasing our overall uncollectible receivables.”
Multi-hospital, Multi-state Not-for-profit U.S. Health System
To learn more or for a no-cost, no-obligation valuation of your late-stage patient accounts, contact Capio today.